An introduction to the currency strength indicator for NinjaTrader
If there’s only one indicator you ever buy for trading forex – this has to be it.
Your success as a forex trader depends on being able to identify when a currency or currency pair is oversold or overbought. If it’s strong or weak, rising or falling and in addition the momentum behind every trend. It’s this concept which lies at the heart of forex trading. Without the Quantum Currency Strength indicator, it’s almost impossible. There are simply too many currencies and too many pairs to do this quickly and easily yourself and even more so when you consider the multitude of charts and timeframes available from seconds and ticks to minutes hours, days and weeks.
The currency strength indicator for NinjaTrader has been designed with one simple objective in mind. To give you a bird’s eye view of the eight major currencies and to show you in a simple, quick and easy way every aspect of currency behaviour of which the first, and perhaps most important, when a currency is either oversold or overbought. In other words, strong or weak.
To help you, the indicator defines these regions for you, with a simple horizontal line. One near the top at 80, and the other near the bottom at 20. When a currency reaches the upper grey line, then it is approaching an overbought state, and when a currency approaches the lower grey line, conversely it is approaching an oversold state.
It’s at these points that the current trend is likely to reverse, offering you potential low risk trading opportunities as a result. Currencies move constantly from one state to another throughout the trading session and in all timeframes and it’s when a currency has reached one of these regions, that a potential reversal in trend is then likely, and it’s simply a question of being patient and waiting for the move to develop on the chart
The currency strength indicator displays the eight currencies individually and you can think of these as the raw components of the forex market – the building blocks if you like, and once disassembled for you to see easily, then gives you endless combinations of trading opportunities from scalping to swing and trend trading in all the various currency pairs.